INVESTMENT TERM OF THE WEEK
Bear Market: A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.
ETFs: GREAT DEAL FOR INVESTORS
An exchange traded fund (ETF) is a type of security that tracks an index, sector, commodity, or other asset, but which can be purchased or sold on a stock exchange the same as a regular stock.
New Gold ETF (GLD), an exchange traded fund sponsored by Absa Capital, offers the opportunity to invest in gold bullion. The company issues listed instruments (structured as debentures) backed by physical gold. Each debenture is approximately equivalent to 1/100 ounces of gold bullion, which is held with a secure depository on behalf of investors. The debentures are listed on the Ghana (GSE) and six other African stock exchanges.
The current share price of New Gold ETF (GLD) is GH¢108.60. GLD this week closed at GH¢108.60 per share. The price has been stable since November 2, 2021, recording a 4.2% gain over its previous closing price of GH¢104.25 on November 1, 2021.
EQUITY MARKET HIGHLIGHTS: The Ghana Stock Market slips; lost 22.72 points over the week to close at 2,766.80; returns -0.81% YTD.
The benchmark GSE Composite Index (GSE-CI) at the close of the week shed 22.72 points to close at 2,766.80 translating into a YTD return of -0.81%. The GSE Financial Stock Index (GSE-FSI) also lost 22.10 points to close the week at 2,131.93 translating into a YTD return of -0.93%. Ecobank Transnational Inc. (ETI), Access Bank Ghana PLC. (ACCESS), Fan Milk PLC. (FML) and PBC Ltd. (PBC) at the close of the week lost GH¢0.01, GH¢0.30 and GH¢1.00 and GH¢0.01 respectively. Market Capitalization thus decreased by GH¢403.26 million over the week to close the trading week at GH¢64.1 billion
A total of 5.4 million shares valued at GH¢5.9 million traded during the week compared to 2.4 million shares valued at GH¢3.4 million which traded the previous week.
Scancom PLC. (MTNGH) recorded the most trades as it accounted for 74.7% of the total value traded.
GSE EQUITY MARKET PERFORMANCE
Indicator | Current Week | Previous Week | Change |
2,766.80 | 2,789.52 | -22.72pts | |
YTD (GSE-CI) | -0.81% | 0.01% | -8200.00% |
GSE-Financial Stock Index | 2,131.93 | 2,154.03 | -22.10 pts |
YTD (GSE-FSI) | -0.93% | 0.10% | -1030.00% |
Market Cap. (GH¢ MN) | 64,097.80 | 64,501.06 | -403.26 |
Volume Traded | 5,497,427 | 2,490,883 | 120.70% |
Value Traded (GH¢) | 5,927,272.53 | 3,422,444.26 | 73.19% |
TOP TRADED EQUITIES
Ticker | Volume | Value (GH¢) |
MTNGH | 3,991,250 | 4,430,288 |
ETI | 965,144 | 130,529 |
CAL | 180,158 | 147,730 |
PBC | 162,100 | 3,242 |
EGL | 48,984 | 146,952 |
DECLINERS | ||||
Ticker | Close Price (GH¢) | Open Price (GH¢) | Change | Y-t-D Change |
ETI | 0.13 | 0.14 | -7.14% | -7.14% |
ACCESS | 2.85 | 3.15 | -9.52% | -9.52% |
FML | 3.00 | 3.95 | -24.05% | -25.00% |
PBC | 0.02 | 0.03 | -33.33% | -33.33% |
KEY ECONOMIC INDICATORS
Indicator | Current | Previous |
Monetary Policy Rate | November 2021 14.50% | 13.50% |
Real GDP Growth | Q3 2021 6.60% | 3.90% |
Inflation | December 2021 12.6% | 12.2% |
Source: GSS, BOG, GBA
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SBL RECOMMENDED PICKS
Equity | Price | Opinion | Market Outlook |
MTN GHANA | GH¢ 1.11 | Strong 2021 Q3 Financials | Improving bids |
BOPP | GH¢ 6.65 | Strong 2021 Q3 Financials | Low demand |
CAL BANK | GH¢ 0.82 | Strong 2021 Q3 Financials | Improving bids |
ECOBANK | GH¢ 7.60 | Strong 2021 Q3 Financials | Bargain bids |
SOGEGH | GH¢ 1.20 | Strong 2021 Q3 Financials | Low demand |
FANMILK | GH¢ 3.00 | Positive Sentiment | Profit taking |
EQUITY UNDER REVIEW:
SCANCOM PLC. (MTNGH)
Share Price | GH¢1.11 |
Price Change (YtD) | -1.80% |
Market Cap. (GH¢) | GH¢13.64 billion |
Dividend Yield | 0.00% |
Earnings Per Share | GH¢0.1532 |
Avg. Daily Volumes | 1,786,687 |
Value Traded (YtD) | GH¢ 34,531,136 |
SUMMARY OF DEC. 2021 EQUITY MARKET ACTIVITIES | |||
Indicator | Jan.-Dec. 2021 | Jan.-Dec. 2020 | % Change |
GSE-CI YTD CHANGE | 43.66% | -13.98% | – |
GSE-CI | 2,866.76 | 1,818.68 | 43.66 |
GSE-FSI YTD CHANGE | 20.70% | -11.73% | – |
GSE-FSI | 2,151.85 | 1,782.76 | 20.70 |
VOLUME | 486.59 M | 695.33 M | -30.02 |
VALUE (GH¢) | 537.27 M | 572.45 M | -6.14 |
MKT. CAP. (GH¢M) | 64,50 M | 54,37 M | 18.61 |
ADVANCERS & DECLINERS | ETI, SIC, EGL. GCB, SCB, EGH, MTNGH, TOTAL. | ||
Source: Ghana Stock Exchange
GSE AGAINST SELECTED AFRICAN STOCK MARKETS | |||
Country | Current Level |
| YTD |
| 2,766.80 |
| -0.81% |
| 7,059.82 |
| 0.72% |
| 11,499.85 |
| -3.76% |
| 160.02 |
| -3.87% |
| 46,205.05 |
| 8.17% |
| 73,454.94 |
| 2.63% |
| 202.54 |
| 0.13% |
(Ghana) GSE-CI
(Botswana) BGSMDC
(Egypt) EGX-30
(Kenya) NSE ASI
(Nigeria) NGSE ASI
(South Africa) JSE ASI
(WAEMU) BRVMSource: Bloomberg
CURRENCY MARKET |
| ||
Currency | Closing Week | Previous Week | YTD Change |
| (GH¢) | (GH¢) | % |
6.0099 | 6.0063 | -0.06% | |
6.8189 | 8.2181 | 0.13% | |
8.1482 | 6.8630 | -0.26% | |
| 6.5957 | 0.0528 | -0.16% |
| 0.3971 | 0.9454 | -5.38% |
| 0.0529 | 95.5788 | -1.32% |
YEN
YUAN
CFA FRANCSource: Bank of Ghana
COMMODITIES MARKET |
| ||
Commodity | Closing Week | Previous Week | YTD (%) |
(US$/bbl.) | 90.72 |
87.78 | 14.66% |
(US$/oz) | 1,783.08 |
1,832.95 |
-2.28% |
(US$/MT) | 2,388.42 |
2,563.27 |
-2.52% |
BRENT CRUDE OIL
GOLD
COCOASource: Bloomberg, Bullion by Post, ICCO
JUSTIFICATIONS FOR INCLUDING STOCKS IN A PORTFOLIO
- Typically stocks outperform all other investment options over a ten-year period making them a must for long term portfolio.
- They are excellent vehicles for retirement.
Except for a few short periods, stocks have consistently outpaced the rate of
ANALYSTS
Godwin Kojo Odoom: Senior Research Analyst
Edna Awurama Fosua: Analyst
Nelson Cudjoe Kuagbedzi: Analyst
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